Factors affecting risks in international payments at Shinhan Bank Vietnam Limited

Abstract

International payments entail intricate processes that expose parties to a range of risks. In the article “Factors affecting risks in international payments at Shinhan Bank Vietnam Limited”, the thesis has systematized theoretical issues in the international payments sector. The thesis proposes a research model to examine international payment risks at Shinhan Bank Vietnam Limited, encompassing several key risk categories: credit risk, foreign exchange rate risk, country risk, legalregulatory risk, and operational risk. This comprehensive model is developed through extensive consultation with experts in this field and is grounded in robust theoretical foundations and existing research models related to international payment risk management. To gather relevant data, a meticulously designed survey questionnaire was distributed, resulting in a substantial collection of 244 valid responses. Employing a quantitative research methodology, the study utilizes a linear structural model to rigorously assess the various risks associated with international payments. This approach allows for a precise evaluation of how different risk factors impact the overall payment system. Furthermore, the study incorporates the Exploratory Factor Analysis (EFA) to delve deeper into the factors influencing these risks, utilizing SPSS 20 for advanced data analysis. By integrating these sophisticated analytical techniques, the study provides a comprehensive understanding of the inherent complexities within international payment systems and identifies the critical factors that contribute to these risks. Based on the results derived from the research model, the study offers recommendations and strategic insights for effective risk management at Shinhan Bank Vietnam Limited. These findings are aimed at enhancing the stability and security of international payment processes, thereby benefiting banks and their clients in navigating the challenging landscape of global financial transactions